Warning regarding Investing in Securities

Warning regarding Investing in Securities

13 June, 2017
Development of Capital Market is one of the main priorities of the National Bank and the Government of Georgia. In 2016, the Government has approved relevant strategy, which states in detail all the plans and events that are expected to encourage investors to invest in the Securities Market in the future.

One of the most important tasks of the capital market development is to inform the public about the issues concerning circulation of securities. It should be noted, that investing in financial instruments requires specific knowledge and experience. The company, which intends to issue public securities, is obliged to prepare a public offering "Prospectus", which explains and describes the company's plans, existing financial condition and all important risk factors. Potential investors should take an educated decision, based on the information provided in that particular Prospectus, analysing all publicly available information about the company and aknowledging possible negative or positive results of various risks factors associated with the company's activities. International experience shows that, generally, retail investors use financial analyst service. 

Please, keep in mind that the financial instrument may lose its market value; What is more, receiving of principal and/or interest amounts of a particular security will depend on the solvency of the issuer.

The state, including the regulator, is not authorized and can’t guarantee the financial sustainability of the issuers. Therefore, investing in such instruments is associated with the investor's personal risk and requires appropriate prudence and analysis.

Therefore, National Bank of Georgia strongly recommends potential investors to act with prudence, carefully inspect the substance of financial instruments offered by different entities, throughly examine the risks associated with the company's activities and only afterwards make the decision to buy the securities.